Chinese Outbound Investment Jumps to a Record High of US$21.37
Billion in 2015

Office remains the most popular asset class, accounting for 40% of
total outbound capital in 2015

The U.S. remains the premier magnet for capital flows from China
(and around the world), taking approximately US$4.37 billion of
Mainland Chinese investment in 2015. Hong Kong and Australia (driven
by Sydney and Melbourne) followed closely behind in the ranking of
global destinations

March 30, 2016 05:14 AM Eastern Daylight Time

SHANGHAI--(BUSINESS WIRE)--Chinese outbound investment jumped to a record high of US$21.37 billion
in 2015, as Mainland-based investors including banks, developers,
insurance firms and sovereign wealth funds continued to snap up
commercial properties around the world, according to a new report
released today by DTZ/Cushman & Wakefield, a global leader in commercial
real estate services.

The China Outbound Investment CapitalWatch report states that overseas
commercial property investment by Mainland-based investors totaled
US$21.37 billion in 2015, representing year-on-year growth of 41.5%, and
over six times the 2010 total.

State-owned firms registered most of the year’s biggest outbound deals,
as these investors tend to transact fewer but larger deals than their
private-sector counterparts. In 2015, state-owned firms accounted for
some 58.8% of the total outbound transaction value by known investors,
but around 30.8% of the total number of transactions, while private
investors made up the remainder.

Office remains the most popular asset class, accounting for 40% of total
outbound capital in 2015. However, development sites took a sizeable 33%
of investment volume, rising from about 26% in 2014. Malaysia tops the
list for total investment in development sites, at US$2.52 billion,
followed by Hong Kong, the U.S., Australia, and Singapore. Notable
transactions of land sites included the US$1.75 billion purchase of the
former site of the Royal Malaysian Air Force Base near Kuala Lumpur, and
a series of development site deals by Mainland developers in Hong Kong.
In fact, according to data from the Lands Department of Hong Kong,
Mainland investors in 2015 accounted for 30% of land transactions in the
city, but 55% of total land transfer fees.

The U.S. remains the premier magnet for capital flows from China (and
around the world), taking approximately US$4.37 billion of Mainland
Chinese investment in 2015.

Justina Fan, DTZ/Cushman & Wakefield's Head of Outbound Investment,
Greater China and Executive Director, Capital Markets, Asia Pacific,
commented: "The U.S. is still viewed as the safest of safe havens, and
the combination of a strong dollar and weakening renminbi boosted the
appeal of the U.S. for Chinese investors in the midst of economic
headwinds and financial market volatility at home."

Hong Kong and Australia (driven by Sydney and Melbourne) followed
closely behind in the ranking of global destinations. Malaysia was also
popular, surpassing the UK in terms of investment from the Mainland. By
region, Asia Pacific still absorbs the greatest amount of Chinese
capital, totaling US$8.1 billion in 2015, a nearly three-fold increase
compared to the previous year.

James Shepherd, Executive Director, International Advisory, Greater
China at DTZ/Cushman & Wakefield, said: "Continued fluctuation of the
renminbi exchange rate will remain one of the primary macroeconomic risk
factors for cross-border investors in 2016, prompting Chinese investors
looking overseas to carefully develop risk mitigation strategies. There
is also evidence to suggest that China's authorities are tightening
controls on capital outflows, which may have a dampening impact on
outbound real estate investment this year, although investor appetite is
likely to remain strong."

The successful
merger of Cushman & Wakefield and DTZ closed September 1, 2015. The
firm now operates under the iconic Cushman & Wakefield brand and has a
new visual identity and logo that position the firm for the future and
reflect its trusted global legacy and wider history. The new Cushman &
Wakefield is led by Chairman & Chief Executive Officer Brett White and
Global President Tod Lickerman. The company is majority owned by an
investor group led by TPG, PAG, and OTPP.

About DTZ/Cushman & Wakefield

Cushman & Wakefield is a leading global real estate services firm that
helps clients transform the way people work, shop and live. The firm’s
43,000 employees in more than 60 countries provide deep local and global
insights that create significant value for occupiers and investors
around the world. In Greater China, the firm has a co-branded presence
under the name of DTZ/Cushman & Wakefield and operates 20 offices in the
region. Cushman & Wakefield is among the largest commercial real estate
services firms with revenues of US$5 billion across core services of
agency leasing, asset services, capital markets, facility services,
global occupier services, investment & asset management, project
management, tenant representation and valuation & advisory. To learn
more, please visit www.dtzcushwake.com
or follow us on WeChat (DTZ_China) and LinkedIn (https://www.linkedin.com/company/dtz-cushman-wakefield).